Facebook Earnings

When Facebook mentioned “a decrease in daily users specifically among younger teens” in last quarter’s earnings call, its share price fell from $57.98 in after-hours to open the next day at $47.16, eliminating tens of billions of dollars in value accrued from strong financials. How will investors react if today’s Q4 2013 earnings see Facebook admit a more serious… Read More

Facebook may be feeling the pinch from teen-focused mobile-first social networks like Snapchat, as CFO David Ebersman said on today’s earnings call that Facebook “did see a decrease in daily users specifically among younger teens,” though he prefaced that saying “usage of Facebook among US teens overall was stable from Q2 to Q3.” This is the first time Facebook… Read More

Facebook app install ads were the star of Facebook’s earnings call today. Sheryl Sandberg said 3800 developers, including 40% of the top 100 iOS app developers, used the ads to drive over 25 million installs. Mark Zuckerberg meanwhile said, “We’re starting to see real revenue from selling mobile app installs.” Read More

It appears that as people switch from the desktop where Facebook shows multiple ads per page to mobile, Facebook is earning less ad revenue per user in its most important markets. While user growth helped total revenue increase, in the US and Canada Facebook earned $2.85 on ads per user (ads ARPU) in Q1, down from $3.30 in the holiday Q4 2012, but also down from $2.87 in Q3.
Another important… Read More

In Q4 of last year, Facebook’s mobile MAUs surpassed desktop for the first time in its history. That trend continued in Q1 2013 with 751M MAUs. This is what we learned with today’s release of Facebook’s Q1 results.
Despite claims earlier this month, Facebook didn’t lose users, but gained 2M. Asia continues to be the largest area of user growth, according to the… Read More

Facebook laid the groundwork for several new money-makers in Q3 2012. Tomorrow’s earnings report will hopefully show if search typeahead ads, app ads, Gifts and Facebook Exchange are actually bringing home the bacon. If they’ve done well and are growing, Facebook’s future might look brighter to Wall Street. If not, Facebook will need new revenue building blocks to help it… Read More

Facebook answered the big question of whether it’s transitioning to become a mobile ad company by noting in today’s earnings report that 14% of total ad revenue from Q3 2012 came from mobile — about $150 million. Here’s the full audio of the earnings call and what Facebook has to do next to milk mobile. Read More